Answer:
As with any legal process, bankruptcy is a complex issue with both positive and negative consequences. Anyone considering filing for bankruptcy should consider all the possible outcomes before taking this step. Whether one is considering a Chapter 7 straight bankruptcy or a Chapter 13 repayment plan case, consulting with a qualified consumer bankruptcy attorney is paramount to ensuring that the process runs smoothly and advantageously.
August 1 M. Harris, the owner, invested $8,000 cash and $34,400 of photography equipment in the company. August 2 The company paid $3,300 cash for an insurance policy covering the next 24 months. August 5 The company purchased supplies for $1,520 cash. August 20 The company received $2,100 cash from taking photos for customers. August 31 The company paid $881 cash for August utilities. Analyze each transaction above by showing its effects on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each transaction. Use the following partial chart of accounts: Cash; Supplies; Prepaid Insurance; Equipment; M. Harris, Capital; Services Revenue; and Utilities Expense.
Answer:
Date : August 1
Assets (Cash $8,000 and Equipment $34,400) = Increase $42,400
Liabilities = No Effect
Equity (Capital $42,400) = Increase $42,400
Date : August 2
Assets (Cash and Equipment) = $3,300 decrease -cash and $3,300 increase - equipment
Liabilities = No effect
Equity = No Effect
Date : August 5
Assets (Cash and Supplies) = $1,520 decrease -cash and $1,520 increase - equipment
Liabilities = No effect
Equity = No Effect
Date : August 20
Assets (Cash ) = Increase $2,100
Liabilities = No Effect
Equity (Services Revenue) = Increase $2,100
Date : August 31
Assets (Cash = Decrease $881
Liabilities = No Effect
Equity (Utilities Expense) = Decrease $881
Explanation:
The accounting equation is stated as : Assets = Equity + Liabilities
Each and every transaction first identify the Accounts affected, then determine which accounts fall within the Asset, Equity or Liabilities category and the effect thereof to the category.
Consider a market with two firms, Kellogg and Post, that sell breakfast cereals. Both companies must choose whether to charge a high price ($) or a low price ($) for their cereals. These price strategies, with corresponding profits, are depicted in the payoff matrix to the right. Kellogg's profits are in red and Post's are in blue. What is the cooperative equilibrium for this game?
Answer:
Both the two companies to choose a price of $4.50
Explanation:
Based on the information given we were told that the two companies have to choose whether they will charge either a price that is high or a price that is low for their cereals which means that the two companies COOPERATIVE EQUILILBRIUM for this game is that both the two companies have to choose a price of the amount of $4.50 which represent the high price.
Coronado Industries received proceeds of $122200 on 10-year, 6% bonds issued on January 1, 2020. The bonds had a face value of $130000, pay interest annually on December 31, and have a call price of 101. Coronado uses the straight-line method of amortization. What is the amount of interest Coronado must pay the bondholders in 2020
Answer:
$7,800
Explanation:
Calculation to determine the amount of interest Coronado must pay the bondholders in 2020
Using this formula
Interest=Bonds issued percentage*Bonds face value
Let plug in the formula
Interest=6%*$130,000
Interest=$7,800
Therefore the amount of interest Coronado must pay the bondholders in 2020 is $7,800
When production is greater than sales ______ affected. Multiple choice question. only the fixed production cost variance is only the variable production cost variance is both the fixed production cost and variable production cost variances are neither the fixed production cost or variable production cost variances are
variable costing will show higher net income than the absorption costing
Fleming Company provided the following information on selected transactions during 2021: Dividends paid to preferred stockholders $ 500,000 Loans made to affiliated corporations 1,400,000 Proceeds from issuing bonds 1,600,000 Proceeds from issuing preferred stock 2,100,000 Proceeds from sale of equipment 800,000 Purchases of inventories 2,400,000 Purchase of land by issuing bonds 600,000 Purchases of treasury stock 1,200,000 The net cash provided (used) by financing activities during 2021 is
Answer:
$2,000,000
Explanation:
Calculation to determine what The net cash provided (used) by financing activities during 2021 is
Using this formula
Net cash provided (used) by financing activities=(Dividends paid to preferred stockholders)+Proceeds from issuing bonds+Proceeds from issuing preferred stock+(Purchases of treasury stock )
Let plug in the formula
Net cash provided (used) by financing activities=($ 500,000) +$1,600,000 + $2,100,000 + ($1,200,000)
Net cash provided (used) by financing activities=$2,000,000
Therefore The net cash provided (used) by financing activities during 2021 is $2,000,000
Services are __________ products. By contrast, goods are __________ products.
a. rare; common
b. intangible; tangible
c. expensive; inexpensive
d. only business; only consumer
Answer:
B
Explanation:
Service is an action being done which is why it's not tangible while goods are the produced items which are tangible
Employing a lawyer to draft and enforce a private contract between parties wishing to solve an externality problem is an example of:_______.
a. an implicit cost.
b. a transaction cost.
c. a sunk cost.
d. an opportunity cost.
Answer:
b. a transaction cost.
Explanation:
Transaction costs can be regarded as expenses which is been incurred during the buying or selling of a good/ service.Transaction costs gives representation of the labor which is required in bringing a particular good/ service to the market,. They are cost required to make any economic trade in regards to participation in a market.
example of transaction cost is
Employing a lawyer to draft and enforce a private contract between parties wishing to solve an externality problem.
During 2019, Coronado Industries expected Job No. 26 to cost $300000 of overhead, $500000 of materials, and $200000 in labor. Coronado applied overhead based on direct labor cost. Actual production required an overhead cost of $370000, $610000 in materials used, and $260000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?
Answer:
See below
Explanation:
Given the above information, first we will compute the predetermined overhead rate
Predetermined overhead rate
= Estimated manufacturing overhead / Estimated labor
= $300,000/$200,000
= 1.5
The next step is to apply the
= [(1.5 × $260,000) + $260,000 + $610,000]
= $390,000 + $260,000 + $610,000
= $1,260,000
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 825,000 $ 550,000 $ 275,000 Variable expenses 495,000 385,000 110,000 Contribution margin 330,000 165,000 165,000 Traceable fixed expenses 156,000 78,000 78,000 Segment margin 174,000 $ 87,000 $ 87,000 Common fixed expenses 69,000 Net operating income $ 105,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.)
Answer:
Piedmont Company
1. Companywide break-even point in dollar sales
= $562,500
2. Break-even point in dollar sales for the North region
= $260,000
3. Break-even point in dollar sales for the South region
= $130,000
Explanation:
a) Data and Calculations:
Contribution format segmented income statement:
Total Company North South
Sales $ 825,000 $ 550,000 $ 275,000
Variable expenses 495,000 385,000 110,000
Contribution margin 330,000 165,000 165,000
Traceable fixed expenses 156,000 78,000 78,000
Segment margin 174,000 $ 87,000 $ 87,000
Common fixed expenses 69,000
Net operating income $ 105,000
Contribution margin ratio = Contribution margin/Sales
= $330,000/$825,00 = 0.40
For the north = $165,000/$550,000 = 0.30
For the south = $165,000/$275,000 = 0.60
Break-even point in dollar sales = Fixed cost/Contribution margin ratio
Companywide break-even point in dollar sales = $225,000/0.40
= $562,500
Break-even point in dollar sales for the North region = $78,000/0.30
= $260,000
Break-even point in dollar sales for the South region = $78,000/0.60
= $130,000
Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: The above per unit data are based on annual production of 8,000 units of the component. Direct labor is a variable cost. The company has received a special, one-time-only order for 500 units of component D53. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. Assuming that Dockwiller has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit below which the company should not accept the special order
Answer: $30
Explanation:
The company has excess capacity which means that we do not have to worry about opportunity costs.
We also do no have to worry about fixed costs and selling expenses.
The only relevant cost is therefore the variable costs:
= Direct labor + Direct material + Variable manufacturing overhead
= 26 + 3 + 1
= $30
Below $30 would mean incurring a loss.
Desert Company issued $3,158,061 of 12% bonds on January 1, 2021. The market rate of interest at that time was 9%. The bonds pay interest quarterly each March 31, June 30, September 30, and December 31. What is the amount of the cash payment Desert is legally obligated to pay its creditor each quarter?
Answer:
Quarterly Interest Payment = $94741.83
Explanation:
The amount of interest payment made by coupon bonds depends on the coupon rate they carry regardless of what the interest rate in market is. Thus Desert will have to pay annual coupon rate of 12% of the face value of the bond. However, as the coupon payments are made quarterly, the quarterly interest that will be paid by Desert will be,
Quarterly Interest Payment = 3158061 * 12% * 1/4
Quarterly Interest Payment = $94741.83
Which could argue that a programmer deserves to have his/her work protected by a copyright purely as a result of his/her inalienable right to try to reap the benefits from his/her labor?
Answer:
What
Explanation:
Pizza ltd. leased equipment from Tasty Company under a four-year lease requiring equal annual payments of sh.86, 038, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no residual value. If Pizza ltd.’s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pizza ltd.) is 8%, what is the amount recorded for the leased asset at the lease inception?
Answer:
Sh. 300,001.60
Explanation:
Note: Missing word has been attached
Particulars Amount
Annual payments 86,038
x PV Annuity due 8%, 10 periods 3.48685
Amount recorded for the leased asset 300,001.60
No one is too old to study
Answer:
True.
Explanation:
Because.
Answer:
truee
Explanation:
Indicate what components of GDP (if any) each of the following transactions would affect.
Transaction Consumption Investment Government Net
Purchases Exports
a. Dell sells a desktop computer from its
inventory to the Johnson family.
b. Your parents buy a bottle of French wine.
c. Honda expands its factory in Ohio.
d. California hires workers to repave Highway 101.
e. The federal government sends your grandmother
a Social Security check.
f. You pay a hairdresser for a haircut.
g. Your parents buy a new house from a local builder.
h. Uncle Henry buys a new refrigerator from a domestic
manufacturer.
Answer:
a. Dell sells a desktop computer from its inventory to the Johnson family.
Component of GDP to be affected: Consumption
b. Your parents buy a bottle of French wine.
Component of GDP to be affected: Consumption
c. Honda expands its factory in Ohio.
Component of GDP to be affected: Investment
d. California hires workers to repave Highway 101.
Component of GDP to be affected: Government Purchases
e. The federal government sends your grandmother a Social Security check.
Component of GDP to be affected: No impact
f. You pay a hairdresser for a haircut.
Component of GDP to be affected:
g. Your parents buy a new house from a local builder.
Component of GDP to be affected: Consumption
h. Uncle Henry buys a new refrigerator from a domestic manufacturer.
Component of GDP to be affected: Consumption
last year, cayman corporation had sales of $26 million, total variable costs of $15 million, and total fixed costs of $5,000,000. in addition, they paid $4 million in interest to bondholders. cayman has a marginal tax rate of 21 percent. if cayman's sales increase by 15%, what should be the increase in operating income
Answer:
Cayman Corporation
The increase in operating income is 27.5% (or $1.65 million).
Explanation:
a) Data and Calculations:
Sales last year = $26 million
Total variable costs 15 million
Contribution margin $11 million
Fixed costs 5 million
Operating income $6 million
Bondholders' interest 4 million
Income before tax $2 million
Income taxes (21%) 0.42 million
Net income $1.58 million
Last Year Increase by 15%
Sales revenue = $26 million $29.9 million
Total variable costs 15 million 17.25 million
Contribution margin $11 million $12.65 million
Fixed costs 5 million 5.0 million
Operating income $6 million $7.65 million $1.65 m or 0.275
Bondholders' interest 4 million 4.0 million
Income before tax $2 million 3.65 million
Income taxes (21%) 0.42 million 0.7665 million
Net income $1.58 million 2.8835 million = 82.5%
Minors are liable for the reasonable value of the necessary:______.
a. actually furnished.
b. that they agreed to purchase.
c. that their parents agreed to pay for.
d. all of these.
Answer:
b. that they agreed to purchase.
Explanation:
A minor is a person who is under the age of 18 and unable to make decision on his own such as mentally impaired or incompetent persons .
A minor cannot enter a contract like adults but if under any circumstance they enter into a contract of sale purchase of daily goods like clothing etc, they are liable to pay the price which they agreed to pay.
Their parents are liable only if the contract was made according to the parent's will etc.
If the minor is unable to pay the agreed amount then the minor should return the goods or fulfill any other liability as imposed by the court of law.
Imagine that you are holding 5,300 shares of stock, currently selling at $40 per share. You are ready to sell the shares but would prefer to put off the sale until next year due to tax reasons. If you continue to hold the shares until January, however, you face the risk that the stock will drop in value before year-end. You decide to use a collar to limit downside risk without laying out a good deal of additional funds. January call options with a strike price of $45 are selling at $3, and January puts with a strike price of $35 are selling at $4. What will be the value of your portfolio in January (net of the proceeds from the options) if the stock price ends up at $28, $40, $48
Answer:
A. $180,200
$148,400
B.$206,700
$212,000
C. $233,200
$254,400
Explanation:
A. Calculation to determine the value of your portfolio in January and the value of your portfolio if you simply continued to hold the shares
STOCK PRICE $28
First step is to calculate the Value at expiration Using this formula
Value at expiration = Value of call + Value of put + Value of stock
Let plug in the formula
Value at expiration= $0 + ($35 - $28) + $28
Value at expiration= $35
Now let calculate the total net proceeds
Using this formula
Total net proceeds=(Final value - Original investment) × numbers of shares
Total net proceeds= ($35 - $1) × 5,300
Total net proceeds= $180,200
Calculation to determine the Net proceeds without using collar
Using this formula
Net proceeds without using collar = Stock price × Number of shares
Let plug in the formula
Net proceeds without using collar= $28 × 5,300 Net proceeds without using collar= $148,400
Therefore the value of your portfolio in January is $180,200 and the value of your portfolio if you simply continued to hold the shares is $148,400
B. STOCK PRICE= $40
First step is to calculate the Value at expiration using this formula
Value at expiration = Value of call + Value of put + Value of stock
Let plug in the formula
Value at expiration= 0 + 0 + $40
Value at expiration= $40
Now let calculate the total net proceeds
Using this formula
Total net proceeds=(Final value - Original investment) × numbers of shares
Total net proceeds= ($40 - $1) × 5,300
Total net proceeds= $206,700
Calculation to determine the Net proceeds without using collar
Using this formula
Net proceeds without using collar = Stock price × number of shares
Let plug in the formula
Net proceeds without = $40 × 5,300
Net proceeds without= $212,000
Therefore the value of your portfolio in January is $206,700 and the value of your portfolio if you simply continued to hold the shares is $212,000
C. STOCK PRICE $48:
First step is to calculate the Value at expiration using this formula
Value at expiration = Value of call + Value of put + Value of stock
Let plug in the formula
Value at expiration= ($45 - $48) + 0 + $48
Value at expiration = $45
Now let calculate the total net proceeds
Using this formula
Total net proceeds=(Final value - Original investment) × Numbers of shares
Total net proceeds= ($45 - $1) × 5,300
Total net proceeds= $233,200
Calculation to determine the Net proceeds without using collar
Using this formula
Net proceeds without using collar= Stock price × Number of shares
Let plug in the formula
Net proceeds without using collar= $48 × 5,300
Net proceeds without using collar= $254,400
Therefore the value of your portfolio in January is $233,200 and the value of your portfolio if you simply continued to hold the shares is $254,400
Coronado Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6370000 on March 1, $5280000 on June 1, and $8650000 on December 31. Coronado Industries borrowed $3170000 on January 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 11%, 3-year, $6350000 note payable and an 12%, 4-year, $12350000 note payable. What are the weighted-average accumulated expenditures
Answer:
Coronado Industries
The weighted-average accumulated expenditures are:
= $8,388,333.
Explanation:
a) Data and Calculations:
Amount borrowed on June 1 = $3,170,000
Interest rate = 13%
Outstanding 11% 3-year note payable = $6,350,000
Outstanding 12% 4-year note payable = $12,350,000
Date Expenditure Weight Weighted-Average
Expenditure
March 1 $6,370,000 10/12 $5,308,333
June 1 $5,280,000 7/12 3,080,000
December 31 $8,650,000 0/12 0
Weighted-average accumulated expenditure $8,388,333
After graduating from UCF, you plan to purchase a small condominium for $100,000. You will be required by the bank to put a down payment of 10% of the purchase price. You plan to finance the loan for 30 years. Assume monthly payments and a nominal rate (monthly compounding) of 3%. What percentage of the first 25 payments goes toward paying principal
Answer:
Percentage of the first 25 payments goes toward paying principal is 41.95%.
Explanation:
Note: See the attached excel file for the amortization schedule for the first 25 months.
In the attached excel file, the monthly is calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value or the balance to pay = Cost * (100% - Percentage of down payment) = $100,000 * (100% - 10%) = $90,000
P = Monthly payment = ?
r = Monthly interest rate = Nominal rate / 12 = 3% / 12 = 0.25%, or 0.0025
n = number of months to repay = 30 years * 12 months = 360
Substitute the values into equation (1) and solve for P, we have:
$90,000 = P * ((1 - (1 / (1 + 0.0025))^360) / 0.0025)
$90,000 = P * 237.189381504283
P = $90,000 / 237.189381504283
P = $379.44
From the attached excel file, we have:
Total payment for the first 25 months = $9,486.09
Total repayment of principal for the first 25 months = $3,979.17
Therefore, we have:
Percentage of the first 25 payments goes toward paying principal = (Total repayment of principal for the first 25 months / Total payment for the first 25 months) * 100 = ($3,979.17 / $9,486.09) * 100 = 41.95%
Kennedy Inc. has the following data for its operation in August: Increase in direct materials inventory 100 Sets Direct materials purchased (AQ) 1,600 Sets Finished goods manufactured 700 units Direct materials purchase-price variance $ 400 Favorable Budgeted Finished goods to manufacture 800 Units Direct materials purchases 2,000 Sets Direct materials per unit of finished goods 2 Sets Direct materials price per set (SP) $ 3.60 What was the actual purchase price (AP) per set of direct materials purchased (to two decimal places)
Answer:
Actual price= $1.6 per unit
Actual price= $3.2 per set
Explanation:
To calculate the actual price, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
400= (1.8 - actual price)*2,000
400= 3,600 - 2,000actual price
2,000actual price = 3,200
actual price= $1.6 per unit
Using the liquidity-preference model, when the Federal Reserve decreases the money supply, a. the equilibrium interest rate increases. b. the aggregate-demand curve shifts to the right. c. the quantity of goods and services demanded is unchanged for a given price level. d. the short-run aggregate-supply curve shifts to the left.
Answer:
A
Explanation:
When the fed increases money supply it is known as expansionary monetary policy. the excess of supply over demand leads to a fall interest rate
Suppose the following transactions occur during 2018. 1. Waddah, a liquor store owner in the United States, buys 80 bottles of wine from a French vineyard at a price of $30 per bottle. 2. Autozone, a U.S. company, sells 200 spark plugs to a South Korean car company at $3.50 per spark plug. 3. Taylor, a U.S. citizen, pays $350 for a snowboard he orders from Arrieta White Mountain Supplies (a U.S. company). Based on these transactions, U.S. net exports (NX) in 2018 is $ ____ . [Note: If your answer is negative don't forget to enter a minus sign]
Answer: -$1,700
Explanation:
The Net exports are to be calculated by deducting imports into the U.S. from Exports to other countries from the U.S.
Exports:
2. Autozone, a U.S. company, sells 200 spark plugs to a South Korean car company at $3.50 per spark plug.
Imports
1. Waddah, a liquor store owner in the United States, buys 80 bottles of wine from a French vineyard at a price of $30 per bottle.
= Exports - Imports
= (200 * 3.50) - [80 * 30]
= -$1,700
The third transaction is neither an import nor an export as it was conducted entirely in the U.S.
Prepare an amortization schedule for a three-year loan of $66,000. The interest rate is 11 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan?
Answer:
Interest = 15,024.18 Amortization Payment = 27008.06 per year
Explanation:
A = P * [ r(1+r)^n / ((1+r)^n - 1) ]
P = 66000
r = 11% = 0.11
n = 3
A = 66000 * [ 0.11(1.11)^3 / (1.11^3 - 1) ]
A = 27008.06
Total Payment = A * n = 27008.06 * 3
Total Payment = 81,024.18
Interest = Total Payment - P = 81024.18 - 66000
Interest = 15024.18
Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of peanut butter each quarter.
The following data are available for the third quarter of 2017.
Total fixed manufacturing overhead.......................................................90,000
Fixed selling and administrative expenses........... .. . .. . .. . . . . .. . . . . . 20,000
Sale price per case..................................................................................32
Direct materials per case .......................................................................15
Direct labor per case ........................................................................6
Variable manufacturing overhead per case ..........................................3
a. Compute the cost per case under both absorption costing and variable costing.
b. Reconcile any differences in income. Explain.
c. Compute te net income under both absorption costing and variable costing.
Answer:
a. Cost per case under Absorption costing:
= Direct materials per case + Direct labor per case + Variable manufacturing overhead per case + Fixed manufacturing overhead per case
= 15 + 6 + 3 + 90,000/ 30,000 cases
= $27
Cost per case under Variable costing:
= Direct materials per case + Direct labor per case + Variable manufacturing overhead per case
= 15 + 6 + 3
= $24
b. First we need to calculate income under both methods:
Under Absorption costing:
= Sales - Cost of goods sold - Selling and Admin expenses
= (30,000 cases * 32) - (30,000 * 27) - 20,000
= $130,000
Under Variable Costing:
= Sales - Cost of Goods sold - Fixed manufacturing overhead - Selling and Admin expenses
= (30,000 * 32) - (30,000 * 24) - 90,000 - 20,000
= $130,000
There is no difference in income because the cases manufactured equals the cases sold.
Prokp Co.'s records for April disclosed the following data relating to direct labor: Actual labor cost (payroll) for April$35,000 Labor rate variance$5,000favorable Labor efficiency variance$3,900unfavorable Actual direct labor hours worked (AQ) 2,500 Prokp's total standard direct labor hours allowed (SQ) for units produced in April (to nearest whole number) were: Multiple Choice
Answer:
2,256 hours
Explanation:
The computation of the total standard direct labor hours allowed (SQ) for units produced is shown below;
As we know that
Labor rate variance = (Actual hours × Actual rate) - (Actual hours × Standard rate)
($5,000) = $35,000 - (2,500 × Standard rate)
2,500 × Standard rate = $40,000
Standard rate = $16
Now
Labor efficiency variance = (Actual hours × Standard rate) - (Standard hours × Standard rate)
$3,900 = (2,500 × $16) - (Standard hours × $16)
Standard hours × $16 = 36,100
Standard hours = 2,256.25
= 2,256 hours
Boenisch Corporation produces and sells a single product with the following characteristics: The company is currently selling 8,000 units per month. Fixed expenses are $406,000 per month. Management is considering using a new component that would increase the unit variable cost by $3. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change
Answer: Increase by $2,000
Explanation:
Current net operating income is:
= Contribution margin - Fixed costs
= (68 * 8,000) - 406,000
= $138,000
If component is added, Variable cost increases by $3 to $105. New contribution margin is:
= 170 - 105
= $65
Units sold increases by 400 to 8,400.
Net operating income becomes:
= (65 * 8,400) - 406,000
= $140,000
Net operating income increased by:
= 140,000 - 138,000
= $2,000
Which facilities or amenities are most commonly available on a cruise chip?
Answer:
Generally, all cruise ship amenities have dining, entertainment, shopping or sporting facilities. There are bars and lounges as well, with some ships providing casinos and other adult-themed entertainment facilities.
Explanation:
The management of Penfold Corporation is considering the purchase of a machine that would cost $270,000, would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $60,000 per year. The company requires a minimum pretax return of 12% on all investment projects. The net present value of the proposed project is closest to:______.
a. $(11,700).
b. $(53,700).
c. $(269,997).
d. $(113,700).
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Initial investment= $270,000
Cash flow= $60,000
Number of years= 5
Discount rate= 12%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
∑[Cf/(1+i)^n]:
Cf1= 60,000/1.12= 53,571.43
Cf2= 60,000/1.12^2= 47,831.63
.....
Cf5= 60,000/1.12^5= 34,045.61
∑[Cf/(1+i)^n]= 216,286.57
Now, the NPV:
NPV= -270,000 + 216,286.57
NPV= -53,713.43
Bakan Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. Production volume 8,600 units 9,600 units Direct materials $ 98.70 per unit $ 98.70 per unit Direct labor $ 25.60 per unit $ 25.60 per unit Manufacturing overhead $ 73.20 per unit $ 69.20 per unit The best estimate of the total variable manufacturing cost per unit is:_______
Answer:
$159.1
Explanation:
The computation of the total variable manufacturing cost per unit is shown below;
At 8,600 units,
The total cos is
= (Direct material per unit + Direct labor per unit + Manufacturing cost per unit) × Number of units
= ($98.70 per unit + $25.60 per unit + $73.20 per unit) × 8,600 units
= $197.5 per unit × 8,600 units
= $1,698,500
At 9,600 units
The Total cost
= ($98.70 per unit + $25.60 per unit + $69.20) × 9,600 units
= $193.5 per unit × 9,600 units
= $1,857,600
So, the best estimated would be;
= ($1857,600 - $1,698,500) ÷ (9,600 units - 8,600 units)
= $159,100 ÷ 1,000 units
= $159.1